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July 25, 2008
How hard is buying a forclosure?
I'm enticed by the deals to be had, but it seems like you need to have a lot of expertise and put in a lot of work. Do people who want to buy a home have a shot of doing this, or is it just for investors? If it is possible, what's my plan of attack?
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I vaguely remember a newspaper report years back which covered a scandal that involved the rigging the of auction process for the bidding on foreclosed homes. The auctions were controlled by a group of insiders. Auctions were held in front of the court houses in the boroughs where each the properties were located. An open bidding process never really took place. When an auction was held, insiders gathered quickly in front of the court house. A fast pre-arranged bidding process was conducted. Before the uninvited knew what was going on the bidding was over. The deal was done. Fait-accompli. This was the way it was done until someone was able to blow the whistle. I haven't heard anything more about this process in many years. But, I wouldn't be surprised that process reverted back to its insider only format, unless the entire procedure has been changed.
Posted by: kidbklyn at July 28, 2008 12:03 PM
I think the catch is that (in NYC anyhow) you don't get to inspect the places and you don't have any guarantee that a building is vacant. So you don't have any idea how much of a headache you're getting yourself into.
Kidbklyn is only half right: They were colluding to keep bids low, but they weren't preventing others from bidding.
Posted by: serpentor at July 29, 2008 1:22 PM
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